COURSE INFORMATION AND SCHEDULE SERVICES MARKETING Trimester III (2012-14) Course Professor: Dr.

Kartik Dave Slot 9.30 am to 12.30 noon, Every Tuesday

Mobile: 09873099223

Contact at: kartik.dave@bimtech.ac.in

Course Objectives: The basic aim of this course is to explain why there is a need for special services marketing discipline, the challenges for services marketing, and how to deal with them. With this basic purpose, the specific objectives of the course are: 1. To discuss the consumer evaluation process for services and how a marketer can influence them. 2. To explain the key ingredients of a service product; outline the service delivery process and the role of interactive marketing in the services; and the strategies to manage fluctuations of demand for services. 3. To outline the foundations for setting service prices, explain the ways service prices can be customized for different segments of customers and discuss the concept of yield or revenue management and its application to specific service industries. 4. To discuss the challenges in designing communication program for services, the key reasons for service communication problems and outline the strategies for matching service promises with delivery. 5. To explain the concept of physical evidence, the various elements of physical evidence and its role in services marketing. 6. To explain the different roles of people in a service firm and their importance in creating service quality and customer satisfaction and to outline the human resource strategies for customer oriented service delivery.

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7. To explain the concept of service quality, the different dimensions of service quality and why the gaps in service quality happen, and how to close them; and to explain the different types of service failures, the reasons thereof and outline the strategies of service recovery in the event of a service failure. To outline the advantages of developing long-term relationships with customers, provide guidelines for selecting customers for developing longterm relationships and suggest a framework for building customer loyalty. Pedagogical Methods: The course employs a balanced mix of lectures/class discussions, case studies, and projects. Lecture / Class Discussion: This time will be devoted to the presentation of theories, concepts, and analytical techniques useful for services marketing management. The course outline indicates topic wise chapters of the relevant textbooks. Students must come prepared to the class by going through the materials specified against each topic prior to the session on that topic. Case Studies: In selecting case materials, I have tried to choose cases which fit the pedagogical objectives of the course and which promise to be interesting to participants. The class will be divided into few groups and each group will have 4 students. The groups will be formed before the second session of the course. Each group should make two pages synopsis on each case in MS Word and bring it to class. It should contain major issues, analysis for resolving the issues, and recommendations on the major issues. The write-ups must be submitted to me before the beginning of the concerned session. Each group must also come ready with few power point slides corresponding to their case synopsis. Project: Each student-group will be required to prepare, submit, and present a project report about a service product of an existing company in the Indian market. The project will cover analysis of the concerned service product its market size, growth, trends, opportunities/threats, competitors, market shares, etc. - and an analysis of the buying behaviour of potential customers. The project will involve study of secondary data and a field survey of potential customers. The group will have to come up with specific recommendations as to how the concerned company should manage this service product so as to improve its competitive position and profitability. The proposal for the project - covering the background of the project, objective, scope, and methodology must be submitted to me by 18th January, 2013 for my approval. Proposals received after the due date will not be accepted.

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The final project report will have to be submitted to the undersigned before March 20th, 2013. The contents of final report should include: Executive Summary 1. Background of the Study 2. Objective of the Study 3. Scope of the Study 4. Methodology 5. Description of the Current Situation Company Industry Major Competitors 6. Selection of Samples and Data Collection 7. Data Analysis and Findings 8. Conclusions 9. Recommendations 10. Limitations of the Project References Appendix Primary Teaching Book & Reading Material: 1. Services Marketing: V Zeithaml, Gremler, Bitner and Ajay Pandit, 5th Edition TMH,2010 2. Services Marketing: Christopher H. Lovelock & Jochen Wirtz (Fifth Edition 2004); Published by Pearson/Prentice Hall (Refer 7/e also) Other Suggested Readings (Books):
Service Management and Operations: Cengiz Haksever, Barry Render, Roberta S. Russel, and Robert G. Murdic (Second Edition 2003); Published by Pearson Education (Singapore) Pte, Ltd

The students will be expected to go through (News Papers & Journals) Exams: Students will be assessed on the basis of case analysis, project, class tests, class participation, and end-term exam. The weightage given to each of these units is listed below: Case Studies (Group) Class Participation Project TWO OLT (Average) End Term Exam 10% 10% 15% 15% 50%

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Class Participation: Learning is totally dependent on the degree and quality of

discussion generated in class. Each student is expected to be present in every session and contribute to class discussion.

Topics to be covered: (Cases will be given from time to time) Session No 1&2 Session-wise Plan Understanding Services The objectives of this topic are to explain what services are and why there is a need for special services marketing concepts and practices; to outline the basic differences between goods and services and the resulting challenges to services marketing arising out of these differences; to explain the distinctions between different services and how to avoid the services marketing myopia; to explain the important role of internal and interactive marketing in services marketing and consequently the need for expanded services marketing mix; and to emphasize the importance of a relationship approach in developing successful services marketing strategies. Reference Chapter/ Case Services Marketing: Christopher H. Lovelock (Chap-1, 2 & 3) Services Marketing: Valerie A. Zeithaml & Mary Jo Bitner (Chap-1)

Understanding Service Consumers The objectives of this topic are to bring out the differences in the consumer evaluation processes between goods and services in different stages of buying process; to explain the different levels of service expectations and factors those shape the consumers expectations; to explain the different factors influencing the consumers perceptions of service; and to outline the different types of service quality and the various determinants of the service quality.

Services Marketing: Christopher H. Lovelock (Chap2) Services Marketing: Valerie A. Zeithaml & Mary Jo Bitner (Chap2, 3, & 4)

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Services Marketing: The objectives of this topic are to explain the Christopher H. concept of service quality and the different Lovelock (Chapdimensions of service quality; to outline the 14) different determinants of perceived service quality; Services to explain the Gap Model of Service Quality, why Marketing: the gaps happen, and how to close them; to discuss Valerie A. the SERVQUAL instrument and its uses in measuring the level of service quality; and to Zeithaml & Mary explain the different aspects of costs of quality and Jo Bitner (Chap18) outline the lessons of service quality research. Managing Service Quality Creating Services and Managing Service Delivery Process The objectives of this topic are to explain the key ingredients in a service product; to bring out the distinctions between core, facilitating, and support services; to outline the service delivery process and the role of interactive marketing in the services; to explain the different levels of customer participations in the creation of service and the strategies to enhance the customer participation in service production and delivery. To outline the concept of service blueprinting and its benefits; to explain the process of developing customer defined service standards; to explain the various strategies to manage fluctuations of demand in the creation and delivery of services; and to discuss the various service delivery intermediaries. Services Marketing: Christopher H. Lovelock (Chap4, 8 & 9) Services Marketing: Valerie A. Zeithaml & Mary Jo Bitner (Chap8, 9, & 14)

Pricing of Services and Revenue Management The objectives of this topic are to discuss the ways in which pricing of services differ from that of goods; to outline the foundations for setting service prices costs, perceived value, and competition; to explain the ways service prices can be customized for different segments of customers; to discuss the concept of yield or revenue management and its application to specific service industries; to explain some of the service pricing concepts such as price bundling, captive pricing, two-part pricing, loss-leadership pricing and result-based

Services Marketing: Christopher H. Lovelock (Chap6) Services Marketing: Valerie A. Zeithaml & Mary Jo Bitner (Chap16)

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pricing; to discuss ways in which price competition challenges can be met; and finally, to list down the steps for better pricing of services. Service Communication and Branding 7 The objectives The objective oof this topic are to explain the role of communication in services marketing; to discuss the challenges in designing communication programme for services and the key reasons for service communication problems; to outline the strategies for matching service promises with delivery; to discuss special issues of advertising for services and lay down guidelines for services advertising; and to explain the special role of promotion in marketing of services Managing Physical Evidence of Service 8 The objectives of this topic are to explain the concept of physical evidence and the various elements of physical evidence; to illustrate different types of servicescape, the roles played by the servicescape, and its effects; to outline the environmental dimensions of servicescape; to explain the design considerations for highcontact and low-contact services; to discuss different approaches for understanding servicescape effects; and to provide guidelines for effective physical evidence strategy. Managing People in Service Industry The objectives of this topic are to explain the different roles of people in a service firm and their importance in creating customer satisfaction and service quality; to outline the human resource strategies for customer oriented service delivery; to explain the importance of internal marketing in delivering the promise made to customers (through external marketing) by effectively managing the process of interactive marketing (managing the moments of truth); and to provide a guideline for people in service organizations and suggest Services Marketing: Christopher H. Lovelock (Chap5) Services Marketing: Valerie A. Zeithaml & Mary Jo Bitner (Chap15) Services Marketing: Christopher H. Lovelock (Chap10) Services Marketing: Valerie A. Zeithaml & Mary Jo Bitner (Chap18)

Services Marketing: Christopher H. Lovelock (Chap11) Services Marketing: Valerie A. Zeithaml & Mary Jo Bitner (Chap11)

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appropriate service oriented organizational structure. 10

Service Failures and Recovery Strategies The objectives of this topic are to explain the different types of service failures and the reasons thereof; to discuss the customer options to deal with service failures and specifically about the complaining behaviour of customers; to outline the strategies and tactics of service recovery in the event of a service failure; to explain the concept of service guarantee and its role in promoting and achieving service quality; and to discuss the objectives of customer feedback system, the tools generally used for such feedback, and the analysis, reporting, and dissemination of customer feedbacks Managing Relationships and Building Loyalty

Services Marketing: Christopher H. Lovelock (Chap13) Services Marketing: Valerie A. Zeithaml & Mary Jo Bitner (Chap7)

Services Marketing: The objectives of this topic are to define relationship H. marketing and outline the advantages of developing Christopher long-term relationships with customers; to explain Lovelock (Chapthe economics of customer loyalty. In that context 12) discuss the concepts of customer lifetime value and Services customer equity; to provide guidelines for selecting Marketing: customers for developing long-term relationships; Valerie A. and to suggest a framework for building customer Zeithaml & Mary loyalty. Jo Bitner (Chap6)